Entrepreneurs are more likely to increase borrowing in scenarios where more competitors enter the market and there is optimism about their goods or services.
Entrepreneurs are more likely to increase borrowing from financial institutions in scenarios a and c, which are: more competitors entering the market and optimism about the goods or services they produce. When there are more competitors entering the market, entrepreneurs may need to borrow funds to stay competitive by investing in research and development, marketing, and expanding their operations. Likewise, when entrepreneurs are optimistic about the potential success of their goods or services, they may want to borrow money to fund their growth and take advantage of market opportunities.